MRKT 354 Lecture Notes - Lecture 10: Reduced Properties, Conjoint Analysis, Febreze
29 Apr 2016
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Chapter 6 competitor analysis and sources of advantage. How does a firm establish a competitive advantage? customer value differentiation advantage customer value cost advantage ex basic product at low price as compared to. Variable cost advantage: lower vc per unit, volume is the key, scale scope and learning effects. Marketing cost advantage: advantages from product line extensions, marketing scope effect: How do firms achieve these advantages scale effects. Reputation advantage superior brand equity leads to customer attraction and premium price (ex lv) Market share: advantage based on market dominance rather than differentiation or cost, ex milk, cola, habit, what you expect the taste to be. Relative market share= company"s market share/ total share of three largest competitor x 100% Product line: broad product line=more prospective customer, *emerging and growing stages, introduction stage is risk taker, innovative individuals. Channel: building key relationship with distributors (control market access)
